ECB's Asmussen: G20's credibility is at risk

BERLIN Fri Feb 22, 2013 10:26pm IST

European Central Bank (ECB) Executive Board member Joerg Asmussen attends an interview with Reuters in Berlin, February 22, 2013. REUTERS/Pawel Kopczynski

European Central Bank (ECB) Executive Board member Joerg Asmussen attends an interview with Reuters in Berlin, February 22, 2013.

Credit: Reuters/Pawel Kopczynski

Related Topics

BERLIN (Reuters) - The Group of 20's credibility is at risk because it has been primarily equipped to deal with crises and is less effective during normal times, European Central Bank board member Joerg Asmussen said on Friday.

Asmussen said that the group of industrialised and industrialising nations needed to be strengthened through reforms to make it more transparent, effective and binding in fighting crises.

"The G20's promising start has unfortunately been followed by more mixed results," Asmussen said in a speech.

"There is no viable or obvious alternative to the G20. .. The G20 should develop further into what it was meant to be from the outset: the premier forum for international economic cooperation."

The G20 has come under criticism for lacking bite and credibility, often not following through on its own agreements and commitments, such as on the Doha trade round.

Asmussen, who attended the first G20 meeting in Berlin in 1999, working for the German finance ministry at the time, said the forum had lost momentum in recent years, also "to an important extent due to a waning sense of urgency".

"Global economic governance as we know it today seems to be well equipped to manage a global crisis. But it is less effective during normal times, which also lessens its ability to prevent future crises," Asmussen said in a speech in Berlin.

"Global economic governance still falls short of meeting the scale of today's challenges."

To revive the G20's power, Asmussen said it needed to adopt a more transparent decision-making process and a more focused and concise operational agenda.

It also needed stronger international financial institutions and to engage with current non-members on an issue-by-issue basis rather than by expanding its membership overly, which could dilute its effectiveness. (Reporting Annika Breidthardt, Editing by Jeremy Gaunt.)

FILED UNDER:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Focus on sectors which will build India: Ambareesh Baliga.  Full Article 

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage